Bethlehem City Council tonight backed Mayor John Callahan's bid to get some of the city's nonprofits to chip in to help close a $4.8 million budget deficit.

Council unanimously passed a resolution asking nonprofits, including Lehigh University, Moravian College and Lehigh Valley Health Network to consider making a payment in lieu of taxes to the city. Callahan has suggested the three entities make a $1 million total contribution.

About 19 percent of the city's land is occupied by nonprofits that by law don't have to pay taxes.

Councilwoman Karen Dolan said an organization's nonprofit status doesn't negate the fact that they employ many people, some who earn large salaries, and that they have endowments. These entities use city services, she said.

While the nonprofits contribute much to the city in kind, Dolan said, Bethlehem needs financial support to continue being an attractive place for the large organizations to be located.

"This is something the city has been requesting in a quieter way for many, many years," Dolan said.

Councilman J. William Reynolds echoed Dolan and noted it's a common practice across the country.

"We're not breaking any new ground here," Reynolds said.

These large institutions rely on city fire, police and other services that don't come for free, Reynolds said.

Council President Eric Evans said the administration can use council's support to help bolster its negotiations.

"We continue to have discussions," Callahan said of the city and the nonprofits.

Councilman David DiGiacinto supported the resolution tonight but he asked why ArtsQuest was not included on the list as he requested.

ArtsQuest already pays the city for services during Musikfest so they shouldn't be added, said Councilman Michael Recchiuti. Dolan noted Callahan's proposal to levy a 5 percent tax on the sale of any concert, show or sporting event ticket in the city is another way of collecting a fair share. She argued that ArtsQuest's land footprint doesn't come close to the other entities, which have taken large swaths of land off the tax rolls calling that "one of the bigger issues that sets these nonprofits apart."

Resident Stephen Antalics, who is a visiting scientist at Lehigh University, criticized council for going after specific nonprofits but not others like PBS39 and ArtsQuest.

"If you do it to three do it to all," Antalics said.

Fiscal mismanagement caused the city's current financial woes, he said. Antalics asked what dollar value can be put on all of Lehigh's contributions to South Side schools.

Dolan countered that skyrocketing pension payment costs, which accounts for $4 million of the budget shortfall, not fiscal management are the culprit. As wonderful Lehigh's contributions to city schools are "it doesn't pay the bills," she said.

Councilmen Robert Donchez added it's also rising medical costs. They are excellent nonprofits that provide a lot to the city but Bethlehem provides a lot to them, he said.

"We're asking for our fair share," Donchez said.

After the meeting, Callahan said he is not pursuing a payment from Northampton Community College, which has only a satellite campus in South Bethlehem and is largely funded by local school districts.

"They have the word community in their name," he said.

Council also passed Callahan's budget proposal in a largely symbolic vote with DiGiacinto casting the only "no" vote. Dolan asked council Solicitor Christopher Spadoni to explain that all ordinances, including the budget, come up for a two-part vote and no council member is bound by a prior vote later. The budget must be passed by the end of the year.